If you want to know how to get a better FICO credit score then pay off your debts. The amount of debt you have and your payment history make up 65% of your FICO score – almost 2/3rds of your score. When you make all your payments on time you are viewed as a responsible borrower and lenders will offer you favorable credit terms.
They also want to see that you are not overextended and borrowing too much money.
The key to increasing your Experian, Equifax and Transunion credit scores is by paying down what you owe on a timely basis. Do not be late on your payments as this can easily crush your credit score. All your hard work will go down the drain with one 30 day late payment.
You can create a personal budget you can stick with and work on slashing your expenses as much as possible and also work on getting more work to increase your take home pay so you can have more cash to allocate to your debts. Or you can find a second job or do some freelance or consulting work.
You can bust your butt for a couple years and get your debts paid off and probably have a pretty decent FICO credit score of 720, 740 or even higher – assuming you are also taking care of the other 3 credit score factors.
It won’t be easy. It will take hard work. But once you pay off your debts you will have a nice credit score that you will be proud to show off.
Start with a personal budget, have a good hard look at your expenses and see where you can cut out unnecessary spending. Look for extra part time work and devote all available free cash to your debts to get them paid off.
- Where Can I Get My FICO Credit Score For Free? (bestfreecreditscores.com)